Market analysis is very important in currency trading. Although no one can predict currency price movements, you can get valuable insights if you analyze the market.

There are two ways to analyze the Forex market. One is technical analysis and the other one is fundamental analysis. Both have advantages and disadvantages so you need to learn how to use these two analysis tools. However, if you are comfortable in crunching numbers and doing statistical predictions, technical currency trading analysis would be best for you.

The first thing you will need when performing technical analysis is a Forex chart. There are different types of charts available for every Forex trader. So be very sure that your Forex broker can provide different charting software to help you analyze the market.

If you are still a novice at the Forex market, you can use simple charts for your technical analysis. Line and bar charts could be very helpful for beginners especially if you just want to identify opening and closing prices trends.

However, you need to start educating yourself in using sophisticated Forex charts such as candlestick charting. Advanced charts can give you extremely valuable insights on the behavior of currency prices. You can also customize the time frames of your Forex charts to suit your trading styles.

When you analyze the market using Forex charts, be sure to strictly follow what the charts are telling you. If you go against the trends predicted by your Forex charts, then there are greater chances that you can lose big time on currency trading.